Notes to Accounts of Siyaram Recycling Industries Ltd.

Mar 31, 2025

1.13 IND AS 37- Provisions, contingent Liabilities and contingent Assets:

Provisions: Provisions are recognised when there is a present obligation as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at
the best estimate of the expenditure required to settle the present obligation at the Balance sheet date
and are not discounted to its present value.

Contingent Liabilities: Contingent liabilities are disclosed when there is possible obligation arising
from the past events, the existence of which will be confirmed only by the occurrence or non occurrence
of one or more uncertain future events not wholly within the control of the Firm or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made.

Contingent Assets: Contingent Assets are not recognised in the financial statements since this may
result in the recognition of income that may never be realised.

However, the company has filed VAT Appeal before Deputy Commissioner State Tax (Appeals), State Tax.
For the matter under consideration total demand of Rs. 5,98,684/- was raised and company has paid the
Demand of Rs. 1,20,000 and for balance amount stay has been granted. As the Company has a present
legal obligation that is reasonably estimable, and it is probable that an outflow of economic benefits
will be required to settle the obligation. Hence the contingent liability is hereby created of Rs. 5,98,684/-.

1.14 IND AS 38- Intangible Assets:

Intangible assets acquired separately are stated at cost less accumulated amortization / accumulated
impairment loss, if any.

1.15 IND AS 40-Investment property:

Investment Property is property (land or a building - or part of a building or both) held (by the owner or by
the lessee as a right-of-use asset) to earn rentals or for capital appreciation or both.Investment Property
is initially recognized at cost comprising the purchase price and directly attributable transaction costs.
General administrative expenses are excluded.

• Financial Assets

Initial Recognition and measurements

All financial assets are recognized initially at fair value plus, in case of financial assets not recorded
at fair value through profit and loss, transaction costs that are attributable to the acquisition of the
financial asset.

Subsequent Measurement

For purposes of subsequent measurement, the Company classifies its financial assets in the
following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income,
or through the Statement of Profit and Loss), and

• those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and
the contractual terms of the cash flows.

Impairment of financial assets

The Company measures the expected credit loss associated with its assets based on historical
trend, industry practices and the business environment in which the entity operates or any other
appropriate basis. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.

De-Recognition of Financial Asset

The Company derecognizes a financial asset when the rights to receive cash flows from the set
have expired or it transfers the right to receive the contractual cash flow on the financial assets
in a transaction in which substantially all the risk and rewards of ownership of the financial asset
are transferred.

• Financial Liabilities

Initial Recognition and measurements

Financial Liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognised
initially at fair value and in the case of loans and borrowings and payables, net of directly
attributable transaction costs. The company''s financial liabilities include trade and other payable,
loans and borrowings.

Subsequent measurement of financial liabilities

The measurement of financial liabilities depends on their classification, as described below:

• Financial liabilities at fair value through profit or loss or

• Financial liabilities at amortised cost

De-Recognition of Financial Liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition

of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit and loss.

• Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

1.17 IND AS 108- Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the
Core Management Committee which includes the Managing Director who is the Chief Operating
Decision Maker. As company is mainly a manufacturer and Core Management Committee examines
performance of the company as a single operating segment in accordance with Ind AS 108 "Operating
Segments" notified pursuant to Companies (Accounting Standards) Rule, 2015. Further, there is
reportable secondary segment i.e. Geographical segment. Core Management Committee examines
performance from geographical perspective and has identified geographical reportable segments from
which significant risks rewards are derived viz. Domestic Sales & Export Sales. Disclosure of the same
has been made herewith. Segment reveune comprises of revenue from operations and other operating
revenue. Segment wise analysis has been made on the below mentioned basis and amounts allocated
on a reasonable basis.

b Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities comprises borrowings, trade and other payables and
other financial liabilities. The main purpose of these financial liabilities is to finance and support
the operations of the Company. The Company''s principal financial assets include trade and other
receivables, loans and cash and cash equivalents that derive directly from its operations.

The Company''s business activities are exposed to a variety of risks including liquidity risk, credit risk
and market risk. The Company seeks to minimize potential adverse effects of these risks on its financial
performance and capital. Financial risk activities are identified, measured and managed in accordance
with the Company''s policies and risk objectives which are summarized below and are reviewed by the
senior management.

Credit Risk

Credit risk refers to risk of financial loss to the Company if customers or counterparties fail to meet their
contractual obligations. The Company is exposed to credit risk from its operating activities (mainly
trade receivables).

Credit Risk Management
(a) Trade Receivables

Customer credit risk is managed by the respective departments subject to the company''s established
policies, procedures and controls relating to customer credit risk management. Customer credit risk
is managed by the Company through its established policies and procedures which involve setting
up credit limits based on credit profiling of individual customers, credit approvals for enhancement
of limits and regular monitoring of important developments viz. payment history, change in
credit rating, regulatory changes, industry outlook etc. The maximum exposure to credit risk at
the reporting date is the carrying value of each class of financial assets. Outstanding receivables
are regularly monitored and an impairment analysis is performed at each reporting date on an

individual basis for each major customer. On account of adoption of Ind AS 109, the Company uses
expected credit loss model to assess the impairment loss or reversal thereof.

(b) Financial assets (Other than trade receivables):

Credit risk from balances with banks and fixed deposits are managed by the Company in accordance
with the Company''s policy. Company provides for expected credit losses on loans and advances
other than trade receivables by assessing individual financial instruments for expectation of
any credit losses.

Liquid Risk

Liquidity risk implies that the Company may not be able to meet its obligations associated with its
financial liabilities. The Company manages its liquidity risk on the basis of the business plan that ensures
that the funds required for financing the business operations and meeting financial liabilities are available
in a timely manner and in the currency required at optimal costs. The Management regularly monitors
rolling forecasts of the Company''s liquidity position to ensure it has sufficient cash on an ongoing basis
to meet operational fund requirements.

Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments may fluctuate
because of changes in market conditions. Market risk broadly comprises three types of risks namely
foreign currency risk, interest rate risk and price risk (for commodities). The above risks may affect the
Company''s income and expense and profit. The Company''s exposure to and management of these risks
are explained below.

(a) Foreign currency risk

The Company operates in international markets and therefore is exposed to foreign currency
risk arising from foreign currency transactions. The exposure relates primarily to the Company''s
operating activities (when the revenue or expense is denominated in foreign currency). Majority
of the Company''s foreign currency transactions are in USD while the rest are in EURO. The major
imports are in respect of Brass Scrap. The risk is measured through forecast of highly probable
foreign currency cash flows.

(b) Commodity Price Risk

Commodity price risk results from changes in market prices for raw materials, which forms the
largest portion of Company''s cost of sale.

1.19 IND AS 113- Fair Value Measurement

Fair Value Measurement is not applicable to the Company as it does not have any financial instruments
or assets/liabilities that require fair value measurement or disclosure.

1.20 IND AS 116- Lease

Leases is not applicable to the Company as it does not have any long term lease transactions within the
scope of the standard.

As per the provisions of Section 135 of the Companies Act, 2013, the Company is required to spend
at least 2% of its average net profits of the preceding three financial years towards CSR activities. The
relevant disclosures are as under:

1.22Expenditure :

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

Cash and Cash Equivalent include cash in hand and balance in bank accounts.

1.23Exceptional items

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to
provide further understanding of the financial performance of the company. These material items of
income or expense have to be shown separately due to their nature or incidence.

For and on behalf of the Board of Directors of
for Kamlesh Rathod & Associates Siyaram Recycling Industries Limited

Chartered Accountants

UDIN: 25131261BMGXNW3548 Sd/- Sd/-

Pushkarraj Jamnalal Kabra Kesha Ravi Shah

Chief Financial Officer Company Secretary

Sd/-

Sagar Shah Sd/- Sd/-

Partner Bhavesh Maheshwari Ramgopal Maheshwari

Membership No. 131261 Managing Director Whole-Time Director

F. R. No. 117930W DIN: 06573087 DIN: 00553232

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Mar 31, 2024

1.11 IND AS 33- Earning Per Share(EPS):

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

1.12 IND AS 36- Impairment of Assets:

The carrying amounts of the Company''s assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. If any such indication exists, an impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognized in the income statement in the period in which the impairment is identified. At each reporting date, an entity assesses whether there is any indication that an asset may be impaired.

1.13 IND AS 37- Provisions, contingent Liabilities and contingent Assets:

Provisions: Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

Contingent Liabilities: Contingent liabilities are disclosed when there is possible obligation arising from the past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Firm or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets: Contingent Assets are not recognised in the financial statements since this may result in the recognition of income that may never be realised.

However, the company has filed VAT Appeal before Deputy Commissioner State Tax (Appeals), State Tax. For the matter under consideration total demand of Rs.5,98,684/- was raised and company has paid the Demand of Rs. 1,20,000 and for balance amount stay has been granted. As the Company has a present legal obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation.hence the contingent liability is hereby created of Rs. 5,98,684/-.

1.14 IND AS 40-Investment property:

Investment Property is property (land or a building - or part of a building or both) held (by the owner or by the lessee as a right-of-use asset) to earn rentals or for capital appreciation or both.Investment Property is initially recognized at cost comprising the purchase price and directly attributable transaction costs. General administrative expenses are excluded.

1.15 IND AS 101- First Time adoption of International Financial Reporting Standards:

These financial statements, for the year ended March 31, 2024, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2023, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Indian GAAP'').

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2024, together with the comparative period data as at and for the year ended March 31, 2023, as described in the summary of significant accounting policies.

1.16 IND AS 107- Financial Instruments: Disclosures

Financial Assets

Initial Recognition and measurements

All financial assets are recognized initially at fair value plus, in case of financial assets not recorded at fair value through profit and loss, transaction costs that are attributable to the acquisition of the financial asset.

Financial Liabilities

Initial Recognition and measurements

Financial Liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, as appropriate. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings and payables, net of directly attributable transaction costs. The company''s financial liabilities include trade and other payable, loans and borrowings.

1.17 IND AS 108- Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Core Management Committee which includes the Managing Director who is the Chief Operating Decision Maker. As company is mainly a manufacturer and Core Management Committee examines performance of the company as a single operating segment in accordance with Ind AS 108 "Operating Segments" notified pursuant to Companies (Accounting Standards) Rule, 2015. Further, there is reportable secondary segment i.e. Geographical segment. Core Management Committee examines performance from geographical perspective and has identified geographical reportable segments from which significant risks rewards are derived viz. Domestic Sales & Export Sales. Disclosure of the same has been made herewith. Segment reveune comprises of revenue from operations and other operating revenue. Segment wise analysis has been made on the below mentioned basis and amounts allocated on a reasonable basis.

There are no Financial assets and liabilities measured or required to be measured at Fair Value. b Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities comprises borrowings, trade and other payables and other financial liabilities. The main purpose of these financial liabilities is to finance and support the operations of the Company. The Company''s principal financial assets include trade and other receivables, loans and cash and cash equivalents that derive directly from its operations.

The Company''s business activities are exposed to a variety of risks including liquidity risk, credit risk and market risk. The Company seeks to minimize potential adverse effects of these risks on its financial performance and capital. Financial risk activities are identified, measured and managed in accordance with the Company''s policies and risk objectives which are summarized below and are reviewed by the senior management.

Credit Risk

Credit risk refers to risk of financial lossto the Company if customers or counterparties fail to meet their contractual obligations. The Company is exposed to credit risk from its operating activities (mainly trade receivables).

Credit Risk Management

(a) Trade Receivables

Customer credit risk is managed by the respective departments subject to the company''s established policies, procedures and controls relating to customer credit risk management. Customer credit risk is managed by the Company through its established policies and procedures which involve setting up credit limits based on credit profiling of individual customers, credit approvals for enhancement of limits and regular monitoring of important developments viz. payment history, change in credit rating, regulatory changes, industry outlook etc. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. Outstanding receivables are regularly monitored and an impairment analysis is performed at each reporting date on an individual basis for each major customer. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or reversal thereof.

(b) Financial assets (Other than trade receivables):

Credit risk from balances with banks and fixed deposits are managed by the Company in accordance with the Company''s policy. Company provides for expected credit losses on loans and advances other than trade receivables by assessing individual financial instruments for expectation of any credit losses.

Liquid Risk

Liquidity risk implies that the Company may not be able to meet its obligations associated with its financial liabilities. The Company manages its liquidity risk on the basis of the business plan that ensures that the funds required for financing the business operations and meeting financial liabilities are available in a timely manner and in the currency required at optimal costs. The Management regularly monitors rolling forecasts of the Company''s liquidity position to ensure it has sufficient cash on an ongoing basis to meet operational fund requirements.

Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments may fluctuate because of changes in market conditions. Market riskbroadly comprises three types of risks namely foreign currency risk, interest rate risk and price risk (for commodities). The above risks may affect the Company''s income and expense and profit. The Company''s exposure to and management of these risks are explained below.

(a) Foreign currency risk

The Company operates in international markets and therefore is exposed to foreign currency risk arising from foreign currency transactions. The exposure relates primarily to the Company''s operating activities (when the revenue or expense is denominated in foreign currency). Majority of the Company''s foreign currency transactions are in USD while the rest are in EURO. The major imports are in respect of Brass Scrap. The risk is measured through forecast of highly probable foreign currency cash flows.

(b) Commodity Price Risk

Commodity price risk results from changes in market prices for raw materials, which forms the largest portion of Company''s cost of sale.

1.19 Expenditure :

Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.

Cash and Cash Equivalent include cash in hand and balance in bank accounts.

Note : 24

Additional Regulatory Information

1 Title deeds of Immovable Property not held in name of the Company

The company does possess any immovable properties whose title deeds are held in the name ofthe company, however the details in such regards is referred in clause (i)c of reporting under the paragraph 5 of the Auditor''s Report Order, 2020 issued by the Central Government of India.

2 The company does not possess any investment property therefore valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers & Valuation) Rules, 2017 is not applicable to the company.

3 The Company has not revalued its Property, Plant and Equipment therefore the revaluation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 therefore this clause is not applicable to the company.

4 The Company has not revalued its intangible assets therefore the revaluation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable to the company.

5 The Company has not granted any loans or advances to promoters, directors, KMPs, and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other persons

6 Capital - Work- in progress (CWIP)

This clause is not applicable to the company.

7 Intangible Assets under Development

This clause is not applicable to the company.

8 Details of Benami Property held:

No proceedings has been initiated against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

9 As per information and explanations given by the management of the company and the audit procedures performed by us, the company has been sanctioned working capital limit in excess of Five Crore rupees, in aggregate, from bank or financial institutions on the basis of security of current assets of the company. Discrepancies noticed in quarterly return/statements filed by the company with such banks and financial institutions with books of accounts of the company but were immaterial as the drawing power limit was justified excluding these differences.

10 Wilful Defaulters

The Company is not declared as wilful defaulter by any bank or financial institutions or other lender.

11 Relationship with Struck off Companies

For the year under consideration, the company has not undertaken any transactions with the struck off companies and therefore, the clause is not applicable.

12 Registration of Charges or satisfaction with Registrar of the Companues (ROC):

During the year under consideration, there are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

13 Compliance with number of layers of companies:

This clause is not applicable to the company

14 Analysis of some significant ratios of the company:

As per Annexure A

15 Compliance with Approved Scheme of Arrangements

This clause is not applicable to the company.

16 Utilization of Borrowed funds & Share Premium:

This Clause is not applicable as the company has not made any investment or advanced any loan for acting as an intermediary during the year.

17 No funds have been advanced / loaned / invested (from borrowed funds or from share premium or from any other sources / kind of funds) by the Company to any other person(s) or entity(ies), including foreign entities (Intermediaries), with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with the understanding (whether recorded in writing or otherwise) that the Company shall (i) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.